The Queensland State Government has been progressively implementing changes to the Retirement Village system since 2017, and the latest changes come into place in November 2019.
Major changes commenced in February 2019 which were aimed to increase the disclosure of relevant information to purchasers and provide greater transparency and certainty.
The November changes are directed primarily at Retirement Village operators and are designed to ensure clarity and accountability in relation to certain financial aspects of running a Retirement Village.
Operators are now required to create and maintain separate bank accounts for monies paid by Residents by way of General Services Charges, Maintenance Reserves, and Capital Replacement. These separate accounts must only be used for the specific purpose for which they are designed and are not to be a general bucket of money used for any purpose the Operator sees fit.
A standard form of document for General Services, Capital Replacement, and Maintenance Reserve Budgets, and for Annual Financial Statements is in the pipeline, all designed to provide greater accountability by the operators, and greater transparency for the residents.
Residents committees, and residents themselves will have the ability to seek explanation of increases in charges and seek better understanding of relevant financial information in the running of their retirement Village.
The new changes also give input to Residents Committees in relation to any proposed redevelopment of Villages, including the change of use of a building within the Village, as well as demolition or construction of buildings.
Retirement Villages are increasingly the lifestyle choice that elder people are opting for, and the industry has in past years been subject to criticism in relation to disclosure and understanding by purchasers. The regime that has been rolled out in 2019, and which is continuing, is designed to ensure that prospective purchasers, and the residents of Retirement Villages, are provided with extensive disclosure and better understanding of their rights and obligations.
The pros and cons and what’s involved in Retirement Village contracts ( coming in, ongoing, and going out) need to be fully understood, and the contracts entered into in full knowledge of the possible scenarios that may have to be dealt with down the track. We at Sunshine Coast Elder Law are experts in Retirement Village Conveyancing.
We also have useful tips about choosing a Retirement Village.
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We also explain some of the lingo involved in Retirement Living Contracts and Aged care in our Blog about Unscrabble the Lingo of Retirement and Aged Care
We offer Fixed Fee Pricing for our Retirement Village Conveyancing. For details of our pricing click here.